What is a Student loan Consolidation ?            

Consolidation means to combine . So,Student loan consolidation means to combine two or more than two student loans into single loan . It is an attractive option for student to repay the loan according to the original terms and conditions.In the consolidation process ,the lending institution or lenders will  pay-off  all  your existing  balances. These  balances  will   be  replaced  by  a   single ,  unique,   consolidated loan.Bank,credit union, student loan lender and many online lending companies  offer consolidated loan.Bank provides online account access with competitive interest rates, low fees and good service.After consolidation, you are left with a single loan with a fixed  interest  rate  and no variable rate loans.Your repayment time period will be extended by 10-20 years depending upon the size of your debt .Student loans can be used to pay-off books , tuition , room and board .                       
If your existing loans are private loans, then you must consolidate with a private lender .In private loan consolidation ,the interest rate is determined  by combination of two factors.

1 The current standard rate such as the prime or LIBOR rate .
2 The credit score determines the margin that is placed on top of the standard rate i.e , prime rate .                    what is a mutual fund ?

Credit Union - They are non-profit, cooperative financial institutions .

Benefits of the consolidating student loans through credit union :

1  Credit Union offers lower interest rates as they do not pay taxes . They pass such savings to their customers in the form of lower interest rates . Thus,you have to pay a smaller amount of money over the life of the loan . They also offeran additional discount if you will open a checking account with them and deduct the payment from that account .
2  If you have an account with them , you have rights to vote for the board of director.  This is an additional advantage that you get over other lenders .
3  They provide one location for your student loan .
4   They always help their customere and don't charge fees for many different things like banks and other lenders .               What is Refinancing ?

Shortcomings of consolidating student loan through credit union :

1  Unlike a bank or other lender, credit union have only a few locations in U.S .
2   Also,credit unions are actually small local businesses as if friendship club for some people . If you are an employee of that company , then student loan may be available to you .